Shanti International Vs Ram Singh Setia (NCLAT Delhi)
The appeal was filed by a successful bidder challenging an order of the Adjudicating Authority (NCLT Mumbai) which had partly allowed and partly rejected reliefs and concessions sought in relation to the acquisition of a corporate debtor during liquidation. The appellant had sought multiple directions to facilitate transfer of ownership and smooth functioning of the corporate debtor as a going concern.
The corporate insolvency resolution process (CIRP) had commenced against the corporate debtor, followed by an order for liquidation. The liquidator conducted an e-auction for sale of the corporate debtor as a going concern on an “as is where is,” “as is what is,” “whatever there is,” and “no recourse” basis. The appellant emerged as the highest bidder and, after payment of the full consideration, was issued a sale certificate. Subsequently, the appellant filed an application seeking various reliefs and concessions to manage the affairs of the corporate debtor.
The Adjudicating Authority granted several reliefs, particularly those necessary for continuation of business and acquisition of the corporate debtor, but declined certain other reliefs or directed the appellant to approach appropriate authorities. Aggrieved by the partial rejection, the appellant filed the appeal seeking grant of additional reliefs.
